Liquid Web Not all business servers are created equal — just ask the IT professionals who support their organizations’ operations and workloads daily.
In 2020, IT specialists estimated a 50/50 split between on-site business servers and cloud-hosted servers used at their companies. In 2024, though, that divide will grow to a 52 percent—24 percent split in favor of cloud-hosted servers.
No matter which type of server works better for your business, one thing’s for sure: the efficiency and reliability of your IT infrastructure can make or break your operations.
In this article, we will explain the basics of a business server, its use cases, and its benefits. Then, we’ll delve into different server options and how to select the right one.
TLDR: Our top picks for business servers designed for organizational needs
- Looking for a dedicated server? Our top choice is the Intel Xeon E-2356G, with the Intel Xeon Gold 6526Y Single server as a runner-up.
- Need a cloud server? You can’t go wrong with the Intel Xeon E5-1650 v4, a server for business built for higher performance and heavier workloads.
- For robust security and performance without the expense of a full dedicated server, a cloud VPS, is your best option.
The basics of a business server
A business server is a computer system designed to store and process data for multiple users within an organization. Servers can handle many concurrent tasks and provide centralized data management.
The business server is at the heart of this infrastructure—a powerful system for managing, storing, and processing data.
A server for business can improve performance, reliability, scalability, and security. Enterprises use these servers to host websites and applications, create virtual environments, and manage large data volumes efficiently.
More businesses are investing in servers to centralize and simplify their IT operations, with the global server market valued at over 136 billion U.S. dollars in 2023.
There are five primary business server components:
- Processor (CPU): The CPU is responsible for executing instructions and processing data. Servers use multi-core processors to handle multiple tasks simultaneously and provide high performance.
- Memory (RAM): Servers have large amounts of RAM so that applications can run well and multiple users can access data simultaneously.
- Storage: Servers store and manage data using Hard Disk Drives (HDDs) and Solid-State Drives (SSDs).
- Network interface: Network interface cards (NICs) enable servers to connect to and communicate over a network.
- Power supply: Servers have redundant power supply systems, like UPS and generators, to maintain uptime.
Businesses can configure these components to build a reliable IT infrastructure for their specific use cases.
On-premise servers vs hosted servers
Businesses can choose between using an on-premise or hosted server.
An on-premise server is a physical server installed and maintained within your business premises. A hosted server involves leasing server resources from a data center through a third-party provider.
Most organizations choose hosted servers because they are easy to set up, cost-efficient, and scalable. The hosting provider also handles maintenance and security.
Why do you need a server for business?
Organizations need a server for essential business tasks, including:
- File and data storage: Database servers provide centralized storage for files, making it easier to manage, back up, and secure critical information.
- Web hosting: Servers provide a reliable and scalable platform for website hosting.
- Application hosting: Application servers host core business applications like enterprise resource planning (ERP) systems.
- Email: Businesses can use dedicated email hosting to manage and store email communications.
- Network management: Servers manage network resources, including user accounts, permissions, and access controls, to improve security.
- Virtualization: Servers can host multiple virtual machines (VMs), so businesses can consolidate resources and run multiple systems on a single physical server.
The benefits of using a server for business
Here are the main benefits of using a server for business:
- Centralized management: A server provides a central hub for managing data, applications, and network resources. This simplifies IT administration, making it easier to implement policies, manage remote user access, and ensure consistency.
- Enhanced security: Hosted servers offer advanced security features, including firewalls and encryption, to protect sensitive business data.
- Scalability: Cloud-based servers are highly scalable, allowing you to expand your IT resources easily. Servers can be upgraded or downgraded in minutes.
- Reliability: Hosted servers provide high reliability and minimize downtime with features like redundant power supplies and automated backups.
- Improved collaboration: A server enables employees to easily access, share, and collaborate on documents and tasks in real-time, regardless of location.
- Cost efficiency: Based on their use cases, businesses can choose an affordable or expensive server. Servers can also eliminate multiple individual workstations and optimize resource use.
- Performance: Servers have powerful processors and memory to handle demanding workloads. So, your applications and databases perform well, even during peak times.
These advantages highlight why a server is a smart investment for businesses of all sizes.
The best business server options
There are different types of servers for businesses. Let’s explore the top three options:
Option #1: Dedicated server
A dedicated server is exclusively allocated to a single individual, organization, or application. Users have complete control over the server’s configuration, operating system, and installed applications.
Dedicated servers deliver optimal performance, making them ideal for resource-intensive applications and high-traffic websites.
Liquid Web offers three dedicated server options:
- Bare metal servers: These are self-managed servers offering the highest performance and customization levels.
- Managed metal servers: Managed servers have additional services, including monitoring, security patches, and technical support, to remove the hassle of server management.
- Custom dedicated servers: Custom servers are tailored to your needs, allowing for bespoke configurations and hardware setups.
Our best dedicated server is the Intel Xeon E-2356G. Here are its specifications:
- Processor: 6 cores, 12 threads, with a base frequency of 3.2 GHz, and Turbo Boost up to 5 GHz.
- Memory: 32 GB RAM. It can be increased to 64GB.
- Storage: Customizable storage options.
This server is perfect for businesses running moderately demanding applications, managing databases, or hosting multiple websites. Its balance of performance and cost-efficiency makes it a versatile choice.
If you need even more power, managed server users can access the Intel Xeon Gold 6526Y Single and Intel Xeon Gold 6526Y Dual servers.
The Intel Xeon Gold 6526Y Single server has 16 cores, with a base frequency of 2.8 GHz (Turbo Boost up to 3.9 GHz). It has 64GB DDR4 RAM that can be raised to 256GB. You can also select different storage, security, and bandwidth options.
This server is great for businesses that need to run high-performance applications.
The Intel Xeon Gold 6526Y Dual server has dual processors, offering 32 cores and 64 threads. It also provides 128 GB RAM (can be increased to 512GB).
It suits companies with extensive computational needs, such as AI processing, big data analytics, and large-scale virtualization.
Option #2: Cloud server
A dedicated cloud server combines the performance of a dedicated server with the flexibility and increased redundancy of cloud computing.
Businesses pay only for the resources they use, reducing overhead costs. They can also deploy virtual instances or resources in minutes and adjust configurations. Cloud servers are great for fluctuating workloads.
Liquid Web offers managed dedicated cloud server options for Windows and Linux:
- Windows: The Intel Xeon E-2356G is the go-to choice for running Windows-based applications, databases, and services.
- Linux: Linux users can choose the Intel Xeon E-2356G server, but they have more options, including the Intel Xeon E3-1230 v6 and the Intel Xeon E5-1650 v4.
- Intel Xeon E3-1230 v6: A solid small business server with efficient processing power and moderate scalability.
- Intel Xeon E5-1650 v4: Has more cores and higher performance, suitable for more demanding Linux workloads.
Option #3: Virtual Private Server (VPS)
Virtual Private Server (VPS) is a type of hosting where virtualized server environments are created for multiple companies on a dedicated physical server. Each VPS has its own resources and configurations and runs independently.
A virtual server provides dedicated resources at economical prices for small to medium-sized businesses. Since each VPS is isolated, there is increased security and performance compared to shared hosting.
Liquid Web offers Cloud VPS and Managed VPS options:
- Cloud VPS: Combines the benefits of cloud hosting and VPS so businesses can scale resources on-demand and manage their environment through a user-friendly control panel.
- Managed VPS: Adds management services, such as software updates and security monitoring, to VPS hosting.
Businesses can use VPS hosting to host websites and run custom applications without the expense of a full dedicated server.
Selecting the right server for your business
When choosing a server for your business, consider these four essential factors:
1. Performance requirements
Evaluate your workloads and choose hardware to support them adequately. You should focus on four primary areas:
Processing power
The processor, or CPU, determines how quickly and efficiently your server can perform tasks. Key considerations include:
- Multi-core processors: Servers with multi-core processors can handle multitasking and run resource-intensive applications. Intel’s Xeon series, specifically the E—and W-series, offer excellent multi-core performance.
- Clock speed: Measured in GHz, clock speed indicates how many cycles a CPU can perform per second. Higher clock speeds mean faster processing.
- Processor architecture: Modern processors, like the Intel Xeon family, are designed with advanced architectures for better performance.
Memory (RAM)
The more RAM your server has, the better it can manage multiple applications and large databases. Modern servers use DDR4 RAM and Error-Correcting Code (ECC) memory, which detects and corrects data corruption to maintain data integrity.
Storage
Storage needs vary significantly depending on the nature of your business operations.
- Hard Disk Drives (HDDs) provide large storage capacities at a lower cost. Suitable for archival and infrequently accessed data.
- Solid State Drives (SSDs) offer faster data access speeds, significantly increasing performance. Ideal for operating systems, databases, and applications that require quick read/write operations.
- NVMe SSDs are newer SSDs that use the NVMe interface for rapid data access compared to traditional SATA SSDs.
2. Scalability options
As your business grows, your server needs may change. So, it’s essential to consider scalability when choosing a server. There are three main types of scaling:
Vertical scaling
Vertical scaling adds more resources to a physical server, like upgrading the CPU or increasing RAM or storage.
This type of scaling is easier to manage since it involves a single server. However, there are physical and technological limits to scaling a single server.
Horizontal scaling
Horizontal scaling adds more servers to your infrastructure. While this type of scaling offers virtually unlimited scalability and redundancy, managing it can be more complex. It may also require additional infrastructure.
Cloud-based scaling
Cloud servers are flexible and scalable, so you can easily adjust resources based on demand. Cloud hosting providers use pay-as-you-go pricing models. There is also no need for physical hardware maintenance.
Form factor
The form factor of a physical server affects its storage capacity and scalability. There are three common server form factors:
- Tower servers resemble traditional desktop computers. They are suitable for small businesses or remote offices with limited IT infrastructure.
- Rack servers can be mounted in a standard server rack. They are used in data centers and larger IT environments.
- Blade servers offer the highest density, with multiple server modules (or blades) housed in a single chassis. They are complex and expensive to implement but ideal for organizations with advanced IT needs.
3. Cost considerations
Cost is a major factor in server selection. Businesses must consider both initial and ongoing expenses.
Initial costs
- Hardware purchase: If you’re using a physical tower server, the upfront cost of purchasing server hardware can be substantial, especially for high-performance models. There is no need to buy hardware for hosted servers or cloud servers.
- Setup and installation: These are costs associated with setting up and configuring your server, including any necessary network infrastructure.
Operating costs
- Energy consumption: On-premise servers can consume significant electricity, leading to high energy bills. Hosted servers do not have energy-related costs.
- Maintenance: Regular maintenance is essential to keeping servers running, and it may require dedicated IT staff or third-party support services.
- Licensing Fees: Costs for software licenses, including operating systems and applications.
Cloud vs On-premises
- Cloud servers: These are less expensive servers since you don’t need to purchase hardware. However, subscription fees might add up over time.
- On-premises servers: High initial investment but may offer lower long-term costs, especially for businesses with stable, predictable workloads.
4. Compatibility with operations
Your server must be compatible with your business operations, so consider factors like software requirements and business continuity.
Software requirements
- Operating systems: The server for business must support the operating systems you use, such as Windows Server, Linux, or Unix.
- Applications: Verify compatibility with the specific applications you rely on, including databases, ERP systems, CRM tools, and custom software.
Business continuity
- Redundancy: Features like RAID configurations and multiple power supplies can help prevent data loss.
- Backup solutions: Regular backups are crucial for protecting your data. Consider servers that offer automated backups or integrate with backup solutions.
- Disaster recovery: Plan for disaster recovery to minimize disruptions and data loss in case of a catastrophic event.
Understanding and examining these factors helps businesses make informed decisions about their server solutions, which support their daily operations and growth.
Get tailored server solutions with Liquid Web
Investing in the right server can drastically increase your organization’s efficiency, security, and scalability. Selecting the best server is a crucial decision that requires careful consideration of performance requirements, cost, and compatibility.
Liquid Web offers a wide range of servers tailored to different business sizes and needs. Whether you choose VPS, dedicated servers, or cloud servers, we have a reliable, secure server solution to meet your needs. You can also customize servers to match unique requirements.